{"id":20782,"date":"2016-05-02T07:40:04","date_gmt":"2016-05-02T14:40:04","guid":{"rendered":"http:\/\/www.questionpro.com\/blog\/?p=20782"},"modified":"2023-08-22T04:41:32","modified_gmt":"2023-08-22T04:41:32","slug":"pricing-research-with-monadic-price-testing","status":"publish","type":"post","link":"https:\/\/www.questionpro.com\/blog\/pricing-research-with-monadic-price-testing\/","title":{"rendered":"Pricing Research with Monadic Price Testing"},"content":{"rendered":"\n

How much should I charge for my product or service? This question has a direct impact on your bottom line and ability to stay in business. There are several survey-based methods for testing the market\u2019s perception of price. Monadic price testing is one such method. Other popular pricing research<\/a> methods include the Van Westendorp Price Sensitivity Meter<\/a>, and its variants.<\/p>\n\n\n\n

In monadic price testing, the respondent sees one price and is asked to state his or her purchase intention at that price point. This design is accepted as being the purest means for measuring price sensitivity, as the respondent is not given the opportunity to re-think their decision.<\/p>\n\n\n\n

With that said this design requires the ability to reach a large number of respondents. For every price point tested there should be 100+ responses. If you are testing 5 \u2013 8 price points then this means 500 \u2013 800 completes. If you are testing prices across key market segments, then those segments need to be considered as well.<\/p>\n\n\n\n

As has been said many times before \u2013 randomness is next to godliness. The same applies with monadic price testing. In order to minimize the potential for bias participants should be randomly assigned to price groups.<\/p>\n\n\n\n

This can be done manually. If your online survey platform<\/a> does not support randomization, then you can divide your sample a priori into groups with each group exposed to one price. This will require multiple versions of your questionnaire each with its own link. If your survey tool supports randomization then one questionnaire version will suffice.<\/p>\n\n\n\n\t

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